The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: joenorm on January 16, 2020, 10:37:39 PM
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Let's say a person receives a gift of $6000 per year from a family member. This gift is not claimed as income. Can that money be lawfully put into a Roth IRA?
In this scenario the money is never taxed, right? This seems too good to be true.
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You're still subject to the restriction that your contributions can't be more than your earned income for the year. Beyond that, money is fungible. There's no real difference between taking a dollar out of your paycheck and putting it in your Roth IRA and taking a dollar out of a gift or inheritance and putting it in your Roth IRA.